Business 08 July 2019
Amazon arbitrage is growing in popularity, and for good reason. People are making thousands of dollars each month by reselling products on Amazon that they purchased either on an online retail site or at a physical store.
Of course, it takes some business know-how and a bit of research into the world of arbitrage to really start raking in the big bucks, but it's totally possible. In the coming years, we can expect to see more individuals taking advantage of FBA, so now might be the time to hop on this trend.
What Makes Amazon Arbitrage So Great?
Let's back up for a second and look at what makes this whole endeavor so great anyway. First of all, it's something that most people start out doing in their spare time. You can continue working your nine-to-five job while making some extra cash on the side, and who wouldn't want that? Furthermore, it doesn't take a genius to figure it out, so even if you're not great with math or numbers, you just need to be observant to start earning money.
The Foundation Is Pretty Simple
As for getting started with Amazon arbitrage, familiarizing yourself with the basics is relatively easy. Recognize that this is a fairly straightforward process. First of all, you can take an item you already have, or buy a product off of Amazon, eBay, or another retail store, online or in store.
You can then send that item to Amazon's fulfillment center, where they will list it to sell. Once the product gets a buyer, Amazon ships it for you thanks to their FBA service, and you make a profit.
So, how are people making money with this process? Consider that you're shopping at Walmart or any other retailer, really. You spot a great sale on an item and notice that it's 50, 60, 75% off.
You can load up on that item and then sell it on Amazon for its full price. Once someone buys it, you will make a profit with very little effort. Clearly, there aren't any entrepreneurial skills required to do that.
The Growing Face of Amazon Arbitrage and FBA
These days, online shopping is becoming the norm, and therefore, people are picking up on the idea of Amazon arbitrage.
They don't have to deal with the same customer service pressures of traditional businesses, nor do they need to worry about providing just the right products because Amazon is a retailer that sells just about everything. Yes, more experienced sellers will try to keep their offerings in a consistent niche, but it's not totally necessary.
When you're just starting out, it's all about easing into it and focusing on a few great products to begin with. To make things even easier, product research solutions such as this app can help save time when sourcing products to sell on Amazon. You don't need to be a jack of all trades, but if you consistently offer consumers good quality products, they will be willing to come back for more.
Sellers also take advantage of Amazon Prime's user benefits because Prime users are more likely to become repeat customers and purchase more. As Amazon arbitrage becomes more popular, you should think about getting started yourself!
Related Articles Around the Web
3 Min Read
I think we can all agree that we are living in unprecedented times, and many of us are experiencing challenges in both our personal and professional lives. But it is important to remember that often, challenging moments present opportunities for change. Right now, companies and individuals are using this time to rethink how they conduct their business, the resources critical to their success, and how they go about their daily activities. And what we are seeing is that more and more people, especially women, are taking control of their lives by starting their own businesses.
While it is estimated that the number of women-owned businesses is one-quarter to one-third of all enterprises worldwide, there are still many women who aspire to make entrepreneurship a reality. A new Herbalife Nutrition survey conducted by OnePoll of 9,000 women across 15 countries, including 2,000 women in the U.S., found that globally, 72% of women want to open their own business. Of those, 50% don't yet have a business and 22% have one but would like to open another.
Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
The second annual survey, which explores women and entrepreneurship globally, revealed the overwhelming challenges women experience in the traditional workplace compared to their male colleagues. In fact, more than 60% of women said they would like to start a business due to unfair treatment in previous job roles. Of the women surveyed, 7 in 10 believe that women must work harder to have the same opportunities as men in the workforce. Results also revealed that 43% of women have delayed having children because they thought it would negatively affect their career, and 25% said they had faced pregnancy discrimination. 42% believe they've been unfairly overlooked for a raise or promotion because of their gender — and of those, the average respondents had it happen three separate times. These are a few of the challenges that have been a catalyst for the surge in entrepreneurship among women.
The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
With the barriers and negative experiences women cited in the workforce, it is not surprising that across the globe, the top motivation for starting a business is to run it themselves (61%). Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
But the women surveyed don't expect entrepreneurship to be smooth sailing: one-third of women with plans for entrepreneurship are "very worried" about their business — or future business — failing in the next five years. The top three challenges when starting a business center around finances — earning enough money to offset costs, having enough budget to grow, and financing their business. And when it comes to financing, women face stark disparities in the capital they often need to fund their business. Boston Consulting Group found that women entrepreneurs averaged $935,000 in investments, which is less than half the average of $2.1 million invested in companies founded by men entrepreneurs. The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
Women entrepreneurs create a source of income for themselves and their families. They are a vital part of our world's economic engine that society needs to support with flexible opportunities, mentorship, and access to capital. Herbalife Nutrition is proud that more than half of our independent distributors worldwide are women who set up their businesses and decide when and where they work and do so on their terms. We need to invest in women entrepreneurs, not only to help one generation, but to offer role models for the next.